Simulation analysis of relationship between production cost and natural environment of iron ore extraction and processing

Волошина, Світлана Василівна and Voloshyna, Svitlana and Костакова, Ліна Дмитрівна and Kostakova, Lina (2017) Simulation analysis of relationship between production cost and natural environment of iron ore extraction and processing. Науковий вісник Національного гірничого університету (4(160)). pp. 112-121. ISSN 2071-2227

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Abstract

With regard to industry characteristics of ore mining and processing enterprise activities in iron ore extraction and processing, a complex of natural factors of influence on product cost based on technological process stages has been developed. Within the complex, mining and geological conditions of field development, mineral resources properties, and ecological factors are distinguished. Nature of the effect of natural factors on product cost based on technological process stages is determined and a theoretical model as a three-level interaction system is developed according to costing items and technological process stages. Formalized models of relation of the level of current expenditures under costing items to certain natural factors are constructed using correlation analysis techniques. Strength of relationship in the developed models is determined and the essence and importance of certain natural factors in changing production cost of mining and concentrating production have been substantiated. Current expenditures of an ore mining and processing enterprise were readjusted under influence of certain natural factors. Based on practical check it was proved that natural factors are to be working objects in the process of cost management at an ore mining and processing enterprise while extracting and processing iron ore.

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